Refinance of a hotel at 100% LTV with SBA 7(a) loan
The financing of this hotel had one major twist, the borrower had no down payment to buy this hotel. We then used his other hotel, the Rodeway Inn of Niagara Falls as required collateral to meet the required global Loan to Value. With the latest SBA rules, the total loans on both hotels have to be at maximum of 85% of the total REAL ESTATE value of both hotels. This means that we were able to obtain 103% loan to purchase price (include all costs of the loan into the loan) on the Econolodge, refinance the Rodeway Inn’s existing seller carry loan with a new SBA 7(a) loan and use the additional remaining collateral in the Rodeway Inn towards the down payment of the Econolodge. This essentially means that if there is sufficient collateral in other assets, a 100% financing is definitely possible for purchase of a hotel.
What Our Client Thinks of Us
See you in few years down the line for another acquisition. Thanks again for everything you have done for us Ramin, if i am every in the California I will visit you or if you are everr in our area please visit us.